The Alert Investor

EPISODE 2: “Investigate Before You Invest”

Derivatives, Variable annuities, Options, Arbitrage– is your head spinning yet? 

Don’t get lost in the alphabet soup of Wall Street jargon…. making smart investment choices isn’t just about what to buy, but also who you do business with.

Welcome to The Alert Investor, brought to you by NASAA …the voice of state and provincial securities regulators.

[SOUNDS OF STOCK MARKET & TICKER]

Securities markets may operate on Wall Street, but stocks, bonds and other securities are sold on Main Street . . . in our neighborhoods and even over our kitchen tables.

Today roughly half of all U.S. households rely on the securities markets to plan and prepare for their financial futures.

And the number of firms and individuals holding themselves out as investment professionals has grown significantly in the past two decades.

Throughout the United States, for example, more than 16,000 investment firms and more than 825,000 securities professionals are licensed to conduct business.

When it comes to investing…it’s not just knowing how the markets are performing…but also who is managing your money and helping you make important decisions about your financial future.  

The good news is you don’t have to go it alone when investing on the street . . . thanks to your state securities regulators . . .  whose primary mission is to protect investors like you from investment fraud.

Before investing your money you should always check out your broker or investment adviser... It’s done through two nationwide registration systems: the C-R-D or the Central Registration Depository for brokers and the I-A-R-D, or Investment Adviser Registration Depository, for investment advisers.

The system works like this . . . Brokers and advisers are required to report complaints or actions against them to the C-R-D or I-A-R-D database…  You can get information about their record simply by calling your state securities regulator or also by going to the Investment Adviser Public Disclosure page on the SEC’s website.  Limited information is also available through the NASD’s online “BrokerCheck” program.

NASAA President Joe Borg…
“Before you invest any money with anyone, for any product call your state securities regulator.”

Your state securities regulator can tell you where your broker or adviser has worked for the last 10 years, the types of licenses they have, their licensing status and most importantly their disciplinary history…

Borg:  “Isn’t this information you want to know before you turn over your hard earned money to some one you may not really know?”

You can also ask your broker or adviser if they have had any information or complaints removed from their official record … or if their firm has been sued based on accounts they’ve handled.

If you want to contact your state securities regulator to check out your broker or adviser, or to report possible investment fraud . . . check out our website at  www.nasaa.org.

NASAA…. Because every investor deserves protection.